Browse > Home / Research, The Daily Biofuel Summary / Defense Department says algae oil production costs over $20, must reach $3 or less to be viable

Defense Department says algae oil production costs over $20, must reach $3 or less to be viable

December 24, 2007

The US Defense Department is estimating that the current production cost of algae oil exceeds $20 per gallon. The Department is exploring the potential of algae oil as a jet fuel source, but said that they need the cost of the oil to get down to $3 per gallon.

The US Department of Energy recently partnered with Chevron in a research effort to develop higher-yield strains of micro algae. The Defense Advanced Research Projects Agency is working on a project with Honeywell, General Electric and the University of North Dakota.

In Hawaii, Royal Dutch Shell and HR Biopetroleum will construct an algae-oil production facility to produce feedstocks for biodiesel.

The companies created a joint venture, called Cellana, to construct a pilot plant in Hawaii, but the production capacity and location was not disclosed.

Business Week published a roundup on developments in algae-based biodiesel, highlighting startups by Chevron, Honeywell and Boeing, as well as the technical challenges of producing algae in a controlled production environment and developing a commercially viable process to extract the oil.

The report quoted a prediction by Martin Tobias, CEO of Imperium Renewables, that he expects the cost of algae oil to fall from as high as $20 per gallon today to $1.70 by 2011, with production capacity reaching 100 Mgy by that point.

The report focused on the growing pains at algae farms, citing the GreenFuels demonstration of algae oil production that was shut down after two weeks over the summer because of problems in controlling the growth rate of the algae.

  • Xcel Energy funds algae biodiesel research project at the University of Minnesota
    • In Minnesota, Xcel Energy has pledged $150,000 to assist in funding an algae-to-biodiesel research project sponsored by the University and the Metropolitan Council. Researchers at the Metropolitan Cou...
  • Algae bloom: Producers snap up algae oil, farms struggle to produce volume, startups proliferate
    • Business Week published a roundup on developments in algae-based biodiesel, highlighting startups by Chevron, Honeywell and Boeing, as well as the technical challenges of producing algae in a controll...
  • US lawmakers tell Defense Department to stop buying tar sand and coal-to-liquid fuels, as EISA Act is implemented
    • In Washington, Rep. Henry Waxman (D-CA)., and Rep. Tom Davis (R-VA) have called on the Department of Defense to comply with section 526 of the Energy Independence and Security Act by discontinuing pur...
  • Texas awards $4 million to algae research project at Texas A&M
    • The Texas Emerging Technology Fund (ETF) awarded $4 million Texas A&M's Texas AgriLife Research unit, and General Atomics, for research into algae based biofuels to support domestic and military fuel ...
  • US Department of Energy resumes work on algae-based biodiesel
    • The U.S. Department of Energy is resuming work on algae-based biodiesel. The National Bioenergy Center at the National Renewable Energy Laboratory in Golden is said to be nearing a cooperative researc...
  • Free position paper on algae opportunities from algae pioneer John Benemann
    • In a new position paper, 'Opportunities and Challenges in Biofuels Production', Dr John R. Benemann reveals key insights into the current reality, opportunity & challenges of Algae Biofuel product...

    Written by Jim Lane · Filed Under Research, The Daily Biofuel Summary 

    Comments

    Got something to say?

    You must be logged in to post a comment.